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Regular City Council Meeting Monday, June 15, 2009 Page 10 Ms. Radel noted that the City would need to discuss deviation from their TIF housing policy allowing for a term of 20 years; given that this analysis was done for 25 or 26 years; or retain the 20 year policy, and advise AEON that they would need to find another source to fill the remaining funding gap. Mayor Klausing closed the Public Hearing at 7:42 p.m.; with no one appearing for or against. b. Public Hearing regarding Issuance of Conduit Debt Refunding Bonds for Eagle Crest Senior Housing/Presbyterian Homes Acting City Manager/Finance Director Chris Miller introduced this issue, as de- tailed in the staff report dated June 15, 2009; and those facilities impacted. Mary Ippel, the City's Bond Counsel of Briggs & Morgan was present to respond to any City Council or public questions; and representatives of Presbyterian Homes were also present. Mayor Klausing opened the Public Hearing at 6:44 p.m. for the purpose of con- sidering the issuance of conduit refunding bonds for Eagle Crest, Inc. / Presbyte- rian Homes. Mayor Klausing closed the Public Hearing at 6:44 p.m.; with no one appearing for or against. 12. Business Items (Action Items) a. Consider Issuing Conduit Debt Refunding Bonds for Eagle Crest Senior Housing/Presbyterian Homes Councilmember Ihlan questioned if there were provisions to recoup financing benefits if the facilities didn't remain under current owners and under their current tax exempt status. Mary Ippel from Briggs & Morgan Ms. Ippel advised that the proceeds had been loaned directly to Eaglecrest, a 501 C-3 corporation; and that there were no income restrictions due to charitable nature of the corporation. Ms. Ippel further advised that proceeds could be trans- ferred, as long as it didn't impact the status of the bonds, and remained charitable and not afor-profit entity. Ms. Ippel noted that the bonds would be secured by guarantee of Freddie Mac; and that there were provisions in the documents as to when their transfer could be allowed. Mayor Klausing reminded Finance Director Miller that the Council had previ- ously discussed a broader policy discussion related to conduit financing.